Market Observation: Indian Textile Association Suggests Government Limit Cotton Export To China

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A few days ago, some people from the Indian Textile Association were optimistic that the effect of tariff cancellation was gradually showing, and the cotton farmers' reluctance to sell was expected to ease, and the situation of tight supply in the next few months might gradually ease.

However, many Indian traders said that the government should make an earlier decision to cancel the cotton import tariff, because the current cotton price has been difficult to control, and the high cotton price has squeezed the profits of downstream textile enterprises, but also restricted the export of Indian cotton.

The export of cotton to Bangladesh should be restricted by the National Textile Association and the government of China. The Association believes that the tax rebate policy for cotton export should be abolished, and leaving cotton in India can create more jobs and higher value.

However, some local cotton farmers in India expressed different views. They believed that restricting exports and regulating cotton prices might benefit textile enterprises, but the income of cotton farmers would be greatly reduced, which would seriously undermine the enthusiasm of cotton farmers.